FBM KLCI

Fed Minutes Show FOMC Divided on QE3

noreply@blogger.com (Durian Edge) — Wed, 15 Feb 2012 23:39:00 +0000

The latest Fed minutes showed a growing divide among hawkish and dovish members over the prospects for a third round of quantitative easing (QE3).
One of the key sections of the Fed minutes – a recap of the most recent Federal Open Market Committee (FOMC) meeting – indicated that:

A few members observed that, in their judgment, current and prospective economic conditions–including elevated unemployment and inflation at or below the Committee’s objective–could warrant the initiation of additional securities purchases before long. Other members indicated that such policy action could become necessary if the economy lost momentum or if inflation seemed likely to remain below its mandate-consistent rate of 2 percent over the medium run. In contrast, one member judged that maintaining the current degree of policy accommodation beyond the near term would likely be inappropriate; that member anticipated that a preemptive tightening of monetary policy would be necessary before the end of 2014 to keep inflation close to 2 percent.

Maybe the fall of the Euro will be the 2012 catastrophe that the Mayans predicted

noreply@blogger.com (Durian Edge) — Wed, 18 Jan 2012 23:57:00 +0000

“We continue to hold gold and gold mining equities, reflecting our concerns that global fiscal and monetary policies continue to tempt fate.”

The above comment comes from the 2011 year-end investor letter of Greenlight Capital, the investment firm run by hedge fund magnate David Einhorn. As one of the more prominent gold bulls of late, Einhorn has held a considerable stake in the SPDR Gold Trust (GLD) for several years and acquired a large position in the Market Vectors Gold Miners ETF (GDX) last year.

Although the majority of Greenlight’s year-end letter did not focus on the firm’s gold positions, Einhorn did note that the yellow metal itself and the GDX were two of Greenlight’s five largest positions as of December 31, 2011.

The letter also discussed several macroeconomic issues that are likely to have an indirect impact on gold prices in the year ahead. Highlights of those include:

The global environment is very complicated. On the one hand, the Federal Reserve has taken a much-needed break from quantitative easing (at least for the moment).

Asia appears to be in much worse shape than it was at this time last year and could be a drag on the world economy going forward.

The European currency crisis has continued to worsen…The latest solution is a work-in-progress treaty being heavily negotiated that, in its current incarnation, will only need to be ratified by a subset of the Eurozone countries. While the leaders have committed in principle, there is significant risk that once the details emerge (and the necessary electorates are consulted), we will discover that some leaders pledged with their fingers cross and, as with prior efforts, this too will fail to get the job done. 2012 may be the year in which the currency crisis will no longer be kept at bay by politicians buying time with empty promises. Maybe the fall of the Euro will be the 2012 catastrophe that the Mayans predicted.

MayBank Likely Rally Up To RM8.60 Level Soon

noreply@blogger.com (Durian Edge) — Fri, 06 Jan 2012 00:13:00 +0000

Base on Maybank chart, share price likely rally up to RM8.60 level in short term. This level is the old high for 2011.

However, in long term MayBank is hard to hold on this support level.

Potential for a third round of quantitative easing (QE3) will continue to be a critical factor for the gold price heading into 2012

noreply@blogger.com (Durian Edge) — Wed, 04 Jan 2012 00:15:00 +0000

Looking ahead to the first trading week of the new year, a slew of U.S. economic reports are likely to serve as catalysts for the gold price. Later this morning, the ISM Index – a key manufacturing gauge – and a report on Construction Spending will be released. The latest Fed minutes – from last month’s Federal Open Market Committee (FOMC) meeting – are due out this afternoon. The remainder of the week includes several data points on the labor market – with ADP employment and weekly jobless claims scheduled for Thursday, followed by the monthly non-farm payrolls data on Friday.

The Federal Reserve will undoubtedly be keeping a close eye on the economic data as it prepares for its next FOMC meeting on January 25-26. The potential for a third round of quantitative easing (QE3) will continue to be a critical factor for the gold price heading into 2012. Thus far, the Ben Bernanke-led Fed has stressed the importance of maintaining accommodative monetary policies for the foreseeable future, but has yet to launch a new money printing campaign.

While the calendar is considerably quieter in Europe this week, German Chancellor Angela Merkel and French President Nicolas Sarkozy announced yesterday that they will meet in Berlin on January 9 to discuss next steps in combating the sovereign debt crisis. Euro zone officials are then scheduled to meet on January 30 at the next European Summit to draft a stricter set of measures for reigning in government spending.

Commenting on the outlook for the gold price, VTB Capital analyst Andrey Kryuchenkov wrote in a recent note to clients that “Longer-term players and physical buyers are likely to return to the market in the first half (of 2012), while the latest price retreat could serve as a good encouragement for hesitant market participants…There is little alternative to gold in times of economic uncertainty, despite the recent rush for the dollar. Gold stands on its own in terms of safe haven buying and bullion allocations are only likely to gain with currency protectionism still at large.”

Euro - more pessimistic than last week about reaching an overall deal

noreply@blogger.com (Durian Edge) — Thu, 08 Dec 2011 00:21:00 +0000

As investors await Friday’s European Union summit in which policymakers are expected to craft the next set of measures to deal with the sovereign debt crisis, a senior German official expressed a particularly cautious view on the summits’ likely outcomes.

“I have to say today, on Wednesday, that I am more pessimistic than last week about reaching an overall deal … A lot of protagonists still have not understood how serious the situation is,” the official stated at a pre-summit briefing, according to Reuters.

“My pessimism stems from the overall picture that I see at this point, in which institutions and member states will have to move on many points to make possible the new treaty rules that we are aiming for,” added the official, who spoke on condition of anonymity.

Other highlights from the report included:

President Nicolas Sarkozy and Chancellor Angela Merkel detailed their plan to amend the EU treaty to anchor stricter budget discipline in the euro area in a letter to European Council President Herman Van Rompuy on Wednesday…The French finance minister said the leaders of France and Germany would not leave Friday’s European Union summit until a ”powerful” deal is reached to restore market trust and prevent the sovereign debt crisis spiraling out of control.

One key uncertainty hanging over the summit is whether the EU treaty can be changed quickly to strengthen budget control.

Van Rompuy says tighter budget oversight sought by Paris and Berlin for the euro area could be achieved quickly by tweaking a protocol to the EU treaty that would not require full ratification procedures in many countries. The German official dismissed that idea as a “trick.”

FBM KLCI Showing Bullish Sign!

noreply@blogger.com (Durian Edge) — Sat, 03 Dec 2011 02:21:00 +0000

FBM KLCI, KLCI, Gold, Share market

Yesterday FBM KLCI close above 1,480 level showing a bullish sign for this month. Share market windows dressing will start 2 week before end year and base on the trading vol, likely FBM KLCI will close above 1,500 by year end.

Bad news from US and Euro will slow down due to coming of long holidays till new year. When no news is good news, share market is ready for mark up.

Chance that the benchmark FBM KLCI will break past its immediate resistance barrier of 1,465 today

noreply@blogger.com (Durian Edge) — Thu, 08 Sep 2011 01:14:00 +0000

There is a chance that the benchmark FBM KLCI will break past its immediate resistance barrier of 1,465 today. If so, then the bellwether could be climbing towards the next resistance line of 1,495 ahead.

This follows a positive overnight performance by Wall Street. Major U.S. equity indices jumped between 2.5% and 3.0%, lifted by hopes that the U.S. President would be announcing a US$300b economic stimulus package later tonight. Back home, on tap today are:

Bank Negara Malaysia’s monetary policy committee meeting, which is expected to leave interest rates unchanged; and
external trade statistics for Jul with one media survey projecting an annual rise of 6.6% for exports and 5.9% for imports, translating to a monthly trade surplus of RM7.7b.

Separately, Fututech will be in the limelight after it has received an unconditional takeover offer to acquire its shares at RM0.50 each (versus its last done price of RM0.485) and warrants at RM0.09 each (versus the existing warrant price of RM0.13).

Asian equities may show a sense of calmness today after coming under selling pressures

noreply@blogger.com (Durian Edge) — Wed, 07 Sep 2011 02:08:00 +0000

Although Wall Street fell last night (with its key stock indices down between 0.3% and 0.9% at the closing bell), Asian equities may show a sense of calmness today after coming under selling pressures yesterday.

Back home, we expect the benchmark FBM KLCI to recover parts of its 20-point (or 1.3%) cumulative loss suffered over the past two days. Nevertheless, from a technical perspective, the bellwether will probably struggle to break past the immediate resistance threshold of 1,465 ahead.

Stocks that could get a lift today include:

Alam Maritim, which has signed a charter party agreement for the provision of vessel and tug transportation services valued at up to RM221m; and
Taliswork after clinching sub-contract works for a dam expansion project in Penang worth RM339m.

Brace for more selling pressures today

noreply@blogger.com (Durian Edge) — Tue, 06 Sep 2011 02:18:00 +0000

Brace for more selling pressures today. While Wall Street was closed for a holiday last night, the futures market has given a warning of further downsides ahead. The Sep futures contract for the bellwether DJIA slumped to hover at a 300-point discount to the spot rate at 8 o’clock this morning.

The bearish external sentiment – clouded by persisting concerns on the European sovereign debt crisis – could open the way for the key FBM KLCI to drop deeper. The benchmark index is expected to back off from its support-turned-resistance level of 1,465 to the next support line of 1,435 ahead.

With capital preservation a top priority these days, most investors may only be interested in stocks that offer visible returns, such as DXN Holdings, which has received a conditional takeover offer to acquire its shares in cash at RM1.75 per share (versus its last traded price of RM1.42).

FBM KLCI could pull back from the immediate support-turned-resistance level of 1,465

noreply@blogger.com (Durian Edge) — Fri, 26 Aug 2011 01:24:00 +0000

The benchmark FBM KLCI could pull back from the immediate support-turned-resistance level of 1,465 as investors may want to lighten their market exposure ahead of the holiday-shortened trading sessions next week. This comes as Wall Street was hit by renewed selling activity last night. Major U.S. equity indices fell between 1.5% and 1.9% amid mixed expectations whether the Federal Reserve chairman would be proposing any fresh policy measures to stimulate the weak U.S. economy at a meeting tonight.

On the corporate front, Berjaya Food shares may attract interest following its proposals to: (a) acquire a 50% stake in Berjaya Starbucks Coffee for RM72m cash; and (b) undertake a rights issue involving 4 rights shares with 4 free warrants for every 5 existing shares held at an issue price of RM0.65 each. Separately, Hong Leong Bank is due to announce its latest quarterly results possibly during lunch hours today.

FBM KLCI on our Malaysian bourse to move sideways

noreply@blogger.com (Durian Edge) — Thu, 25 Aug 2011 01:33:00 +0000

Even though Wall Street extended its gains last night – its key equity indices rose between 0.9% and 1.3% on better economic data – we suspect Asian investors would be keeping an eye on the U.S. stock futures performance for market direction today.

This morning, the Dow Jones Industrial Average Sep futures contract lost ground (partly due to news that the CEO of Apple has resigned) to hover at a 73-point discount to the spot rate. We expect the benchmark FBM KLCI on our Malaysian bourse to move sideways with a marginal positive bias ahead after declining by 13.2-point yesterday.

In terms of corporate developments, among the listed companies that reported below expectations financial results last evening were Kinsteel, Kossan Rubber and LM Cement. More earnings announcements are due to be made later today, including from Maxis (during lunch hours), Sime Darby and Genting/Genting Malaysia. Separately, EPIC could be in the limelight after getting an unconditional takeover offer to buy its shares at RM3.10 each, which will also involve a cash compensation scheme to the shareholders who have sold their EPIC shares between 10 Dec 2010 and 23 Aug 2011.

Wall Street jumped last night

noreply@blogger.com (Durian Edge) — Wed, 24 Aug 2011 02:02:00 +0000

Wall Street jumped last night. Key U.S. equity indices rose between 3.0% and 4.3% chiefly on the expectations that the Federal Reserve chairman could be announcing fresh policy responses to stimulate the struggling U.S. economy at a gathering of central bankers later this week.

This may provide a temporary boost to investment sentiment around the region today. On the chart, the benchmark FBM KLCI will probably climb towards its technical resistance level of 1,495 ahead. Meanwhile, among the slew of corporate financial result announcements out yesterday evening, banking heavyweight CIMB’s report card came in within expectations (which may lead to a rebound in its share price after dropping 4.4% in three days) while Axiata and MAS posted disappointing earnings.

FBM KLCI may swing sideways with a downward bias ahead

noreply@blogger.com (Durian Edge) — Tue, 23 Aug 2011 01:44:00 +0000

After rising as much as 1.9%-2.4% initially, major U.S. equity indices lost steam subsequently to finish between flat and marginally up (0.3%) last night. This pedestrian Wall Street performance would likely prompt Asian investors to be cautious today.

Sentiment on our Malaysian bourse could be affected too. The benchmark FBM KLCI may swing sideways with a downward bias ahead. Immediate support level is seen at 1,465. Against the sluggish broad market backdrop, investors are expected to react to individual corporate developments such as:

Sunway as its shares will be re-quoted today following the merger exercise between Sunway Holdings and Sunway City;
KNM, after reporting below consensus earnings in 2Q11; and
Axiata, which is due to announce its latest quarterly results during lunch time.

Meanwhile, more financial announcements – from the likes of CIMB, MAS, AirAsia and Parkson – are scheduled to be made after market hours today.

Selling pressures across Asia when trading resumes this week

noreply@blogger.com (Durian Edge) — Mon, 22 Aug 2011 01:27:00 +0000

Brace for more selling pressures across Asia when trading resumes this week. Essentially, the bears would remain in control following an extended drop on Wall Street last Friday. Key U.S. equity indices fell between 1.5% and 1.6% at the closing bell as investors sold equities in response to deteriorating economic prospects.

Back home, the benchmark FBM KLCI will likely start the week on a weaker footing, possible sliding towards the immediate support level of 1,465 ahead. Among the index heavyweights that could drag down the broad market today include Tenaga (after it issued a profit warning arising from additional high fuel costs) and Maybank (which is due to release its latest quarterly results during lunch hours today).

Report from HWangDBS

The bears are back, causing Wall Street to tumble again last night

noreply@blogger.com (Durian Edge) — Fri, 19 Aug 2011 01:49:00 +0000

The bears are back, causing Wall Street to tumble again last night. Key U.S. equity indices slumped between 3.7% and 5.2% at the closing bell on mounting concerns that the global economic recovery would stall while European banks could face capital constraints.

The negative vibes will surely be felt across the region today. Back home, we expect the benchmark FBM KLCI to slip below its immediate support level of 1,495, possibly falling towards the next support mark of 1,465. In terms of corporate development, we may see interest from investors in: (a) Dialog Group, which has proposed a rights issue with warrants (on the basis of 2 rights shares and 1 warrant for every 10 shares held); and (b) Petra Energy, following a media
report saying that its parent Perdana Petroleum is looking to sell its 29.6% stake in the company.

It is going to be a slow trading day on our Malaysian stock exchange today

noreply@blogger.com (Durian Edge) — Thu, 18 Aug 2011 01:42:00 +0000

It is going to be a slow trading day on our Malaysian stock exchange today, much like yesterday (which saw fewer than 900m shares changing hands) as a dearth of fresh market leads is expected to keep most investors on the sideline. On Wall Street last night, key U.S. equity indices ended between flat and marginally weaker (-0.5%).

Similarly, the FBM KLCI will likely show a flat performance ahead to reflect the sluggish investors’ mood. The benchmark index could be moving sideways inside a narrow trading range with its immediate support level seen at 1,495.

Against a broadly quiet market backdrop, Esso Malaysia shares will come under the limelight following the sale of a 65% controlling stake to San Miguel Corporation, which will also be required to extend a mandatory takeover offer at RM3.50 per Esso Malaysia share (versus its last traded price of RM4.95). Separately, MISC is scheduled to announce its latest quarterly results in the evening.

Report from HWangDBS

Rollercoaster ride for Wall Street continues

noreply@blogger.com (Durian Edge) — Fri, 12 Aug 2011 02:55:00 +0000

And the rollercoaster ride for Wall Street continues. Extending their recent volatile swings, key U.S. equity indices jumped between 3.9% and 4.7% last night following news of a drop in jobless claims.

The positive overnight lead should calm investors around the region today. Back home, the benchmark FBM KLCI could stage a technical rebound but may struggle to cross the immediate resistance level of 1,495 ahead. In terms of news flows, Prime Minister Najib Razak is scheduled to make an investment announcement in East Coast this morning while on the corporate front, Alam Maritim has secured oil & gas services contracts worth RM20m and Catcha Media has served up a negative surprise after amending its strategic alliance agreement with Microsoft to less favorable terms. Later in the evening, Genting Singapore (a subsidiary of Malaysia-listed Genting Bhd) is due to release its latest quarterly earnings.

FBM KLCI could tumble towards the support zone of 1,415-1,435 ahead

noreply@blogger.com (Durian Edge) — Thu, 11 Aug 2011 01:34:00 +0000

Yesterday’s market rebound might be a short-lived one as our Malaysian bourse is likely to surrender all its gains and more following Wall Street’s overnight collapse. Its benchmark FBM KLCI could tumble towards the support zone of 1,415-1,435 ahead.

Investors will be looking to dump shares across the region today after major U.S. equity indices plunged between 4.1% and 4.6% last night. Essentially, market sentiment was hit hard amid mounting worries that there would be spillover effects from possible fallout from the prevailing European debt crisis. With the number of declining stocks set to overwhelm advancing ones back home, hoping to buck the bearish trend is Malaysia Airports. The stock may react to a media report that airport taxes could be raised from next month.

Technical rebound

noreply@blogger.com (Durian Edge) — Wed, 10 Aug 2011 01:29:00 +0000

Our benchmark FBM KLCI recovered from a low of 1,423.47 during the morning session yesterday to close at 1,472.14 (-24.85pts). Technically speaking, the benchmark index is likely to showcase a technical rebound, pulling away from its immediate support level of 1,465.

Sentiments could be further boosted by the overnight gains in the Wall Street with the US key equity indices rebounded strongly between +4.0% and +5.3%, after the worst drop since Dec 2008. The Fed has vowed to keep interest rates near zero through mid-2013 which could be seen as a temporary respite for the regional markets today.

Back home, counters that are likely to garner increased trading interest today include: (a) Malaysia Airlines and AirAsia, after Khazanah agreed to swap 20.5% of its ownership in Malaysia Airlines for a 10% stake in AirAsia, and (b) Hartalega, following its best quarterly results with RM55m net profit which came better than expected. Meanwhile, industrial production statistics for June will be on tap later in the evening.

Capital preservation will be the priority of most investors for now

noreply@blogger.com (Durian Edge) — Tue, 09 Aug 2011 06:00:00 +0000

After recovering from a low of 1,476.24 to close at 1,496.99 yesterday (which represents a 27.4-point decline), the key FBM KLCI is expected to plunge deeper on persisting selling activities today. Technically speaking, the benchmark index may fall towards the next support level of 1,465 ahead.

Essentially, investors will be more inclined to sell rather than buy equities following Wall Street’s extended freefall. Major U.S. stock bellwether tumbled further last night (down between 5.5% and 6.9% at the closing bell) in the aftermath of S&P’s downgrade of the U.S. sovereign credit rating. And more downside could be in store when trading resumes today, as the Dow Jones Industrial Average futures contract was hovering at a 157-point discount to the spot rate this morning. Given the prevailing jittery market mood, it seems too early to bottom fish at this juncture.

Capital preservation will be the priority of most investors for now.

From HWangDBS

When the U.S. sneeze the rest of the world catches the cold.

noreply@blogger.com (Durian Edge) — Mon, 08 Aug 2011 04:17:00 +0000

Our Malaysian bourse could carry on marching to the beat of its overseas peers as volatile external forces continue to dictate investors’ sentiment. Its benchmark FBM KLCI may gyrate with a negative bias, probably falling inside the support zone of 1,465-1,495 ahead.

The key market barometer reached a low of 1,509.37 before settling at 1,524.43 last week, down 24.4- point or 1.6% from where it was two Fridays ago, its fourth consecutive week of declines. Both the FBM 70 Index (-2.8% week-on-week) and the FBM ACE Index (-1.7%) were hit too. Trading activity rose to a daily average of 1.2b shares valued at RM2.0b, compared to the 1.0b units worth RM1.6b traded a fortnight ago. When the U.S. sneeze the rest of the world catches the cold. And this was what happened last week. Although the legislative approval for a raise in federal debt ceiling was granted, worries over the U.S. economy losing steam and sovereign credit rating downgrades spooked investors.

Consequently, Wall Street’s equity indices dived sharply to close with a weekly drop of between 5.8% and 8.1%, thus wiping out their year-to-date gains. The bears also crossed over to the other parts of the world, trampling on Asian equities to leave behind a trail of destructions. For the week just ended, the worst hit stock markets in the region were Taiwan (-9.2%), Korea (-8.9%) and China shares listed in Hong Kong (-7.6%). With the economy being the salient talking point these days, the U.S. Federal Reserve will come under greater scrutiny this week. At the Federal Open Market Committee meeting on Tuesday, there could be added expectations for the policymakers to announce fresh economic stimulus initiatives, or at least prevent
confidence from tanking further by spelling out contingency plans should the world’s largest economy threaten to slip into a double-dip recession, while keeping interest rates low for an extended period. Realistically speaking, it will take time for sentiment to pick up again following last week’s global equities rout. This should apply too to our local bourse as its performance will still be subject to foreign fund flows (and any redemption impact). According to the stock exchange, foreigners were net buyers for the fourth straight month when they posted a surplus sum of RM0.6b in Jul (versus +RM3.2b in Jun). The amount of foreign money in Malaysia equities, therefore, could have increased slightly (from our estimate of RM290b based on a foreign ownership of 22.0% as of end-Jun), notwithstanding last week’s market sell-off.

Meanwhile, in the month of Jul, local institutional funds were equally balanced in terms of buying and selling (versus a net selling figure of RM1.9b the previous month) while retail investors were net sellers to the tune of RM0.2b (-RM0.8b in Jun). For the coming week, our domestic stock market may continue to take the leads from overseas developments, which will make local news less relevant. On tap are: (a) the index of industrial production report for Jun, due for release on Wednesday; (b) plantation statistics for Jul (to be out on Wednesday); and (c) isolated material corporate events such as a possible share swap pact between the substantial shareholders of Malaysian Airline System and AirAsia.

On the chart, the FBM KLCI – after a pullback of 72.7-point or 4.5% from its peak of 1,597.08 – has dropped to where it was three months ago and is now hovering just marginally above last year’s closing level of 1,518.91. The bearish momentum generated from the aggressive selling last week suggests that the benchmark index is expected to remain under pressures going forward. A further sell-down could then send the bellwether to test the first two support lines of 1,495 and 1,465, respectively.

While a sustained market rebound appears less probable in the short run – as a trend reversal may only be in the offing if and when the FBM KLCI crosses above 1,575 – it is still premature to jump to conclusion that the bull run that started in mid-Mar 2009 has already ended as we anticipate probable interventions from policymakers around the world to check the slide. Let’s keep our fingers crossed that this will be done sooner rather than later.

Report From HWangDBS

Wall Street last night, causing a collapse of between 4.3% and 5.1%

noreply@blogger.com (Durian Edge) — Fri, 05 Aug 2011 07:31:00 +0000

Mayday! Mayday! The bears ran wild on Wall Street last night, causing a collapse of between 4.3% and 5.1% in key equity indices amid mounting concerns that the global economic recovery might stall.

This will inevitably trigger a sell-off across Asia equities today. The benchmark FBM KLCI on our Malaysian bourse will not be spared too, likely to drop below the immediate support level of 1,530 ahead. In terms of corporate developments, Atis should buck the falling market trend, as the company has proposed a selective capital reduction and repayment exercise to make a cash return of RM1.30 per share to entitled shareholders. Separately, Affin shares are expected to come under focus too after it called off its acquisition plan to acquire an Indonesian bank.

Wall Street went on a rollercoaster ride last night

noreply@blogger.com (Durian Edge) — Thu, 04 Aug 2011 05:47:00 +0000

Wall Street went on a rollercoaster ride last night. Key U.S. equity indices were down 1.4%-1.8% at their intra-day lows before staging a subsequent rebound to finish in positive territory (up between 0.3% and 0.9% at the closing bell) as some investors speculated that the Federal Reserve could implement fresh stimulus measures to boost the economy.

As a response, sentiment across Asia today will likely remain nervous following the volatile overnight performance of Wall Street. Back home, the benchmark FBM KLCI could struggle to break past its immediate resistance barrier of 1,550 ahead. With the economy being the main subject widely talked about currently, investors will be eager to check out Malaysia’s external
trade statistics for Jun.

One media survey has projected an annual rise of 6.1% for exports and 2.5% for imports, translating to a monthly trade surplus of RM7.7b. On the corporate front, recently listed Prestariang shares may see added trading interest today after it has signed an agreement with Prometric to develop a testing and certification program for English for its customers.

FBM KLCI may see a marginal downward bias

noreply@blogger.com (Durian Edge) — Tue, 02 Aug 2011 02:06:00 +0000

Asian equities could give back parts of their gains made yesterday due to an absence of follow-through buying activity today. This comes as key stock indices on Wall Street fell between 0.1% and 0.4% last night as investors reacted negatively to weak manufacturing data, which overshadowed an imminent legislative approval for a higher federal debt ceiling.

Back home, the benchmark FBM KLCI may see a marginal downward bias too, possibly attempting to find a stable footing above the resistance-turned-support line of 1,550.
Meanwhile, there is not much corporate news for investors to chew on today. One local business daily reported that a consortium comprising the controlling shareholders of Genting Group, Hong Leong Group and Lion Group has signed an agreement to acquire Tanjong’s numbers forecasting operation for RM2.1b. Separately, Pulai Springs has received a conditional takeover offer from its substantial shareholder to purchase the remaining shares at RM1.18 per share in cash (versus its last done price of RM0.90).

Report from HWangDBS

U.S. federal debt ceiling impasse still nowhere in sight

noreply@blogger.com (Durian Edge) — Thu, 28 Jul 2011 01:15:00 +0000

With a breakthrough in the U.S. federal debt ceiling impasse still nowhere in sight, key U.S. equity indices plunged between 1.6% and 2.6% last night. This would likely hit Asian stocks when trading resumes this morning.

Our Malaysian bourse will probably not be spared from the selling pressures too. The benchmark FBM KLCI is expected to retreat further, possibly testing its immediate support line of 1,550 ahead. Given the bearish underlying market tone, and couple with the thin news flows on the corporate scene, investors may not be in the mood to buy equities at this moment. One company that could see added interest today is Malaysia Airports, which is scheduled to announce its financial results for the Apr – Jun quarter in the early afternoon.